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FCA goes all-in on Jeep and Ram brands on cheap gas bet

It's no surprise that as SUV and truck sales remain strong in the wake of unusually cheap gas, Jeep and Ram sales are taking off. What is a surprise is that FCA CEO Sergio Marchionne thinks that cheap gas will be a "permanent condition," and feels strongly enough about it to change up North American manufacturing plans. Jeep appears to be the biggest beneficiary of the product realignment. In addition to increasing the sales estimates for the brand worldwide upwards to 2 million units a year by 2018, the brand will get a flood of investment for new product and powertrains. Consider the Wrangler Pickup to be part of the salvo, as well as the Grand Wagoneer three-row announced in 2014 as part of the original five-year plan. The Wrangler four-door will get at least two new powertrains, a diesel and mild hybrid version, in its next generation. That mild hybrid powertrain may utilize a 48-volt electrical system like the one that's being developed by Delphi and Bosch – which the suppliers think will be worth a 10 to 15 percent fuel economy gain at a minimum. Down the road, in the 2020s, the Wrangler could adopt a full hybrid system. The diesel powertrain is planned for 2019 or 2020. The Ram 1500 is also pegged to receive a mild hybrid system, again potentially based on 48-volt architecture, sometime after 2020. Lastly, Jeep and Ram will take over some of the production capacity of existing plants. The Sterling Heights, MI, plant that builds the Chrysler 200 will now build the Ram 1500; the Belvidere, IL, facility that produces the Dodge Dart will take over Cherokee output; the big Jeep facility in Toledo, OH, will be used for increased Wrangler demand. In 2015, according to FCA's numbers, car and van demand went down by 10 percent, but SUV demand went up 8 percent and truck demand 2 percent. Considering that these are high-margin vehicles, FCA can't ignore the math. FCA also won't build any new factories to supplement production to meet demand, but instead are reshuffling production priorities. Think of it this way: FCA is gambling on cheap gas being a permanent part of our lives, at least into the 2020s. By doubling down on SUVs and trucks, the company stands to win big, unless a spike in gas prices changes the landscape. FCA isn't talking about a Plan B, so they're all in. It'll be interesting to see how this plays out.

2017 Chrysler Pacifica Hybrid scored 84 MPGe in government testing

The 2017 Chrysler Pacific, in non-hybrid form, was already at the top of the minivan heap in terms of EPA-rated fuel economy. Now the government agency has released its official test numbers for the Pacifica Hybrid, and they're looking pretty good. The non-hybrid Pacifica achieved 28 highway, 18 city, and 22 combined miles per gallon, which compared favorably to the 2016 Honda Odyssey's 28/19/22 and Nissan Quest's 27/20/23 ratings. You can read more about the regular Pacifica's scores right here. But none of these vans compare to the Pacifica Hybrid, which is incidentally the only hybrid in the class. FCA claims that the EPA's numbers are even better than the anticipated 80 MPGe, although we can't speak to whether that's an honest admission or a too-convenient claim. But there's no denying that the official rating – 84 MPGe – is impressive. If you aren't familiar with the MPGe rating, no worries. It's not as straightforward as conventional EPA MPG ratings, but a layperson can understand how it works. MPGe stands for miles per gallon equivalent, and measures fuel economy based on the energy content of a gallon of petroleum-based gasoline. For those who like formulas, the Automotive X Prize once defined MPGe as (miles driven) / [(total energy of all fuels consumed)/(energy of one gallon of gasoline)]). As for a conventional rating, the EPA only provides a combined city/highway number on the Monroney sticker, and an FCA spokesperson told us that the rating for the Pacifica Hybrid will be 32 MPG. This represents the hybrid working as normal, not in EV-only mode. It's also an improvement of almost 10 MPG over the combined ratings of the top three conventional minivans in the segment, including the non-hybrid Pacifica. Range is also fantastic. The EPA rated the total EV-only range as 33 miles, and the overall combined range at a staggering 566 miles. And that's from a fuel tank that's just 17 gallons (compared to the 19-gallon tank in the conventional Pacifica, which nets it a 418-mile EPA-rated range). FCA is going to extraordinary lengths to credit its eFlite transmission-generator unit, which can supply electric power to the front wheels if necessary. It's a piece of equipment that represents a substantial engineering investment, and apparently that's all paid off. Chrysler tells us that the Pacifica Hybrid will go on sale next month, and that dealers will get more volume in Q1. Related Video: This content is hosted by a third party.

Detroit automakers gain market share simultaneously for first time in 20 years

While monthly sales figures might be an easy way of tracking the progression of the auto industry and individual automakers, looking at market share might be more indicative of how each company is actually standing up against its competitors. For the Detroit Three automakers, they have collectively lost almost 30 percent of the market over the last 20 years, but now, for the first time since 1993, Ford, General Motors and Chrysler have each posted market share gains at the same time.
According to Automotive News, Ford's share increased the most by 0.7 percent, GM was up 0.5 percent and Chrysler rose marginally by 0.2 percent, giving the Detroit automakers a total market share of 45.6 percent. As for the Japan's Big Three, the article reports that Toyota is up by 0.7 percent, Nissan is down the same amount and Honda has seen "little change."